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Supply Chain Insights

The Manufacturing of Semiconductors: A Bird's Eye View

Semiconductors are a key component of almost every industry. It’s essential to have a high-level understanding of the industry and where it’s heading.

The semiconductor industry is one of the most important industries in the logistics and supply chain management world, not just because it produces the microchips that run computers and other electronics, but also because it is a major supplier of materials used in other industrial sectors. Many companies in a variety of industries rely on semiconductors and their manufacturing processes to produce goods. It's critical to have a bird's eye view of the industry and potential next steps in the space.

What is a semiconductor?

Semiconductors are a group of materials that conduct electricity under certain conditions. For example, semiconductor devices can be used to control current in an electronic device such as a light bulb or radio.

In the case of transistors (which are popular semiconductor devices), they act as switches that allow electrical signals to pass through to other components within an electronic device. Transistors make up most modern electronics such as computers, cell phones, and televisions.

Transistors are made from silicon, which is one type of material known as a "semiconductor". Other types include germanium and gallium arsenide (GaAs).

Semiconductor manufacturers use these different types of materials to create different types of semiconductor products including computer chips for processing data or microprocessors for running applications on computers.

What are semiconductors used for?

Semiconductors are used in a wide range of applications and span across a plurality of industries. Here are some of the newer, more exciting applications for semiconductors.

Semiconductors and the Internet of Things (IoT)

The Internet of Things (IoT) is a network of devices that communicate with each other. IoT devices are connected through the internet and can be used in many industries, including manufacturing. Semiconductor manufacturers use IoT technology to track the progress of their products throughout production. For example, a semiconductor manufacturer may use sensors to track the temperature and pressure inside its equipment during fabrication processes, which helps them ensure quality control standards are met at every stage of production.

The rise of 5G technology networks

The next generation of wireless connection, 5G, promises to be faster and more reliable than today's 4G networks. However, it's not just about faster download speeds—5G will play a critical role in supporting the Internet of Things. Because IoT devices are often used for industrial applications such as manufacturing, transportation services, shipping/receiving logistics and healthcare diagnostics/treatment monitoring; they require not only fast data transfer rates but also very low latency periods where there is no delay between sending information and receiving a response.

The future of the semiconductor industry

The semiconductor industry is a fast-growing, high-tech sector that produces essential components for many of today’s electronic devices. The industry is also one of the most important industries in the world because it has a great influence on society and its development.

Semiconductor growth has boomed at an incredible rate with no signs of slowing down in the near future. In fact, it’s expected to continue growing for years to come due to its vital role in modern technology, as well as the increasing demand for smaller and more energy efficient electronics.

The global nature of this dynamic industry means that there are opportunities available across diverse geographies and cultures.

Semiconductors will continue to be an important part of modern industry.

Semiconductors are an important part of modern industry, and the semiconductor market is a huge one: the semiconductor industry generated revenues of $527 billion in 2021. Semiconductors have as wide of a range of applications as these numbers suggest; they are used in everything from computers to smartphones and beyond. They are also at the heart of our increasingly connected world—a phenomenon known as the internet of things (IoT).

Semiconductors are an important part of modern industry, making it possible for us to connect with each other and exchange information in ways we never thought possible. We will continue to see more uses for semiconductors as technology advances, so it is important that we understand how semiconductor chips work and the manufacturing process behind them.

Written by
Terry Jeffords

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